GoodWorks 2011

Capstone - Spring 2011

Final Business Plan

GoodWorksGood Work is the Best Business

GOODWORKS

J. Bean, K. Crisp, G. Hayward, K. Hayuk, K. James, T. Ko, J. Stoneberg !

May 18, 2011!

Table of Contents

1.0 Executive Summary 1

1.1 Introduction of the Venture 1

1.2 Opportunity and Customer Need 1

1.3 Target Market and Projections 2

1.4 Competitive Advantage (Value Proposition) 2

1.5 Business Model 2

1.6 Management Model 2

1.7 Financial Summary Table 2

2.0 Venture Overview 3

3.0 The Opportunity & Customer Need 4

3.1 Disengaged Employees 4

3.2 Correlation Between Engagement and CSR 4

3.3 The Sustainability Journey 5

3.4 Total Addressable Market 6

3.5 Target Market 8

3.6 Market Growth 8

4.0 The Venture 9

4.1 Overview 9

Justin Bean, Karie Crisp, Kima Hayuk, Giles Hayward, Kelly James, Ted Ko, Jill Stoneberg

Capstone: GoodWorks i

4.2 Key Features, Benefits, and Product Experience 10

4.3 Concept Basis 12

4.4 Value Chain 13

4.5 Value for Sustainability 14

5.0 Competition 15

5.1 Competitive Landscape 15

5.2 Competitors 15

5.3 Competitive Advantage 17

6.0 Marketing 19

6.1 Marketing Research 19

6.2 Distribution and Pricing Strategy 20

6.3 Brand Promise, Positioning & Values 20

6.4 Market Segmentation 21

6.5 Customer Archetype 22

6.6 Promotion & Sales Strategy 23

7.0 Business Model 24

8.0 Financials 25

8.1 Financial Projections 25

8.2 Break Even Analysis 26

8.3 Capital Requirements 26

8.4 Exit 27

9.0 Management & Organization for Venture Launch 28


Capstone: GoodWorks ii

9.1 Management Team 28

9.2 Advisory Board – Target Members 29

10.0 Appendix 31

10.1 Financial Assumptions 31

10.2 GoodWorks Engagement Platform Screenshots 32

11.0 Resources 35


Capstone: GoodWorks iii

1.0 Executive Summary

1.1 Introduction of the Venture

The GoodWorks “Engagement Platform” is a web-based enterprise social network that

inspires spontaneous collaboration, empowers action, and stimulates innovation.

GoodWorks leverages a corporation’s greatest asset, its people, and enables them to

realize their latent potential for solving sustainability issues. Through gaming dynamics,

users create interactive missions (Projects with Purpose) that solve sustainable business

challenges, turning unmotivated members of a workforce into engaged players on a

company’s team. GoodWorks’ vision is to transform the way people work by maximizing

engagement, increasing productivity, and empowering employees to make a difference.

This will result in companies realizing stronger brand equity, enhanced talent retention and

acquisition, and an improved integrated bottom line. For a demo of GoodWorks, please

visit the following website.

1.2 Opportunity and Customer Need

70% of employees are disengaged at work. This is a significant problem translating into

costly factors such as lower productivity, higher turnover, and lower profits for companies

to the tune of $300 Billion per year in the US alone (“Employee Engagement: What’s Your

Engagement Ratio?”, 2008). GoodWorks recognizes the intersection of employee

engagement and sustainability and has identified $852 Million as the initial market

opportunity outlined below in Figure 1. GoodWorks plans to go beyond sustainability and

fundamentally transform the way people work thereby tapping into the larger $300 Billion

market opportunity.


Capstone: GoodWorks 1

http://www.wix.com/justinbean/goodworks-preview%23!mission-demo

http://www.wix.com/justinbean/goodworks-preview%23!mission-demo

1.3 Target Market and Projections

Figure 1: TAM - Overlap of Employee Engagement and Sustainability

1.4 Competitive Advantage (Value Proposition)

GoodWorks’ vision of its own “mission accomplished” is to raise the performance of client

corporations by maximizing employee engagement, increasing productivity, strengthening

brand equity, while improving an integrated bottom line. The customizable platform will

allow all “players” of the organization to more effectively communicate and form stronger

connections as they collaborate to carry out Missions.

1.5 Business Model

GoodWorks’ business model is a standard enterprise Software-as-a-Service (SaaS) model.

Customers purchase yearly “player” licenses for each employee to participate in their

customized GoodWorks Engagement Platform. GoodWorks consulting services provide

experts to help customers launch and grow their GoodWorks community. GoodWorks

community managers provide ongoing expertise in Mission design, community facilitation

and CSR initiatives/metrics.

1.6 Management Model

GoodWorks’ founding members are highly competent sustainability professionals with core

values such as systems thinking and adaptability which align to the spirit of the venture.

1.7 Financial Summary Table

Figure 2: Financial Summary Table



2.0 Venture Overview

GoodWorks is a consulting firm and enterprise software developer that specializes in

solving the needs for corporations to engage employees in actively meeting and

exceeding the company’s CSR (Corporate Social Responsibility) goals.

Our licensing model provides clients with access to an interactive online “Engagement

Platform”, which enables employees as “players” to connect and collaborate to carry

out CSR missions. Through gaming dynamics we encourage members to co-create

fun, interactive missions that solve real-world problems; turning unmotivated members

of a workforce into engaged players of the company’s team. The customizable platform

will allow all “players” of the organization to more effectively communicate, form

stronger connections and receive the intrinsic reward of recognition for those who

perform admirably in socially conscious missions.

Goodworks’ “Engagement Platform” leverages a corporation’s greatest asset, its

people, and enables them to realize their latent potential for solving complex

sustainability issues. We focus on implementing systems that inspire, engage and

empower employees to take the lead in forming and completing company CSR goals.

Fundamentally, GoodWorks’ platform will transform the way people work. GoodWorks’

vision of our own “mission accomplished” is to raise the performance of our client

corporations by maximizing employee engagement, increasing productivity,

strengthening brand equity, while improving an integrated bottom line.



3.0 The Opportunity & Customer Need

3.1 Disengaged Employees

A 2007-2008 Global Workforce Study by Towers Perrin found that only 30% of employees

across the country are engaged at work (Towers Perrin, 2008). And, according to a recent

Gallup report, engagement drives business results, including customer satisfaction and

profitability (Robison, 2010). “People want to be engaged in work with a purpose, and

they want insight into how their work is linked to larger organizational and societal

goals” (Reeves & Read, p. 6, 2009). Finding a way to tap into latent human potential could

unlock a $300 Billion opportunity, which represents the annual US revenue lost from a

disengaged workforce (“Employee Engagement: What’s Your Engagement Ratio?”, 2008).

3.2 Correlation Between Engagement and CSR

The Towers Perrin study also showed that an organization’s reputation in terms of being a

good corporate citizen is one of the main drivers for employee engagement (Towers Perrin,

2008, p. 9). More and more organizations are awakening to the value of Corporate Social

Responsibility (CSR) initiatives and their correlation to positive returns in the form of

increased employee productivity and profitability. Figure 3 below illustrates this correlation.



Figure 3: Correlation Between Employee Engagement and CSR (Willard, 2011)

The financial crisis does not seem to be impacting this trend, as 20% of CSR reports filed

over each of the last few years were first timers (Hicks, 2010). In spite of this growth in

companies establishing CSR policies, goals and annual reports, employees are often the

least informed (Kinnicutt & Mirvis, 2008, p. 49). Moreover, businesses are challenged by

how to make CSR initiatives relevant to employees and part of the larger business strategy.

3.3 The Sustainability Journey

In the book, The Sustainability Champion’s Guidebook, author Bob Willard (2009)

illustrates the “The Corporate Sustainability Journey” (Willard, 2009, p. 11), as shown in

Figure 4 below. As a company moves from stage one to stage five, the company’s

sustainability initiatives become more robust and pervasive to the company’s culture.

However, most companies that are involved in some form of sustainability practice remain

in stages one through three. Companies that are at stage three might have a Sustainability

Director or volunteer-based green teams. However, sustainability usually remains siloed

and left on the periphery of the organization. The main environmental initiatives are usually

around eco-efficiencies — making environmental improvements to company operations in

order to save energy and cut costs. While these efforts are a step in the right direction, in



stages one through three, sustainability is not leveraged as a driver of employee

engagement. Furthermore, sustainability is not leveraged as a driver of innovation, new

product development or new revenue generation.

Figure 4: The Sustainability Journey (Willard, 2011)

Finding a way to communicate and involve employees in CSR initiatives will close the

engagement gap and result in happier, more productive employees, satisfied customers,

and greater company profitability (Gallup Consulting, 2010, p. 3). GoodWorks is positioned

to address this opportunity.

However, the potential for the GoodWorks platform extends beyond employee

engagement in CSR initiatives. Ultimately, the platform will be used as a self-organizing tool

that will fundamentally transform the way people work.

3.4 Total Addressable Market

The initial addressable market is found where employee engagement practices and CSR

initiatives intersect. While both can be difficult to measure, the following criteria informed

the addressable market calculation:

• Being ranked among Fortune’s 100 Best Companies to Work For® and the 50 Best

Small and Medium Workplaces shows that a company invests in its employees.

GoodWorks assumes that all ranked companies understand the correlation between



CSR and employee engagement and are actively pursuing some form of CSR initiatives

within the organization.

• Producing a Sustainability Report is a best practice and demonstrates that a company

values CSR performance and a positive brand reputation. GoodWorks assumes that all

companies that produce a CSR report understand that CSR can be an employee

engagement driver.

• More than 7,630 companies globally produce some form of a sustainability report

(“CorporateRegister.com Reports,” 2011). Reports could include the Global Reporting

Initiative (GRI), Carbon Disclosure Project (CDP) or an integrated annual report.

• There are roughly 400 Certified B Corporations (“B Corporation - Home,” n.d.), which

represent organizations that are committed to solving social and environmental issues.

GoodWorks assumes that all Certified B Corporations are within the addressable market.

• For the market calculation, small-to-medium sized companies are defined as having

fewer than 1,000 employees while large companies have greater than 1,000 employees.

GoodWorks assumes that target customers have, on average, 2,500 employees.

The price for the GoodWorks Engagement Platform will be subscription based per number

of employees. It is assumed that customers will be willing to spend three dollars per

employee per month. To account for rapid growth in CSR reporting and for simplicity

purposes, the addressable market calculation below (see Figure 5) assumes no overlap

between segments.

Figure 5: Total Addressable Market Calculation



3.5 Target Market

The target market encompasses a spectrum of companies at the CSR and engagement

intersection. Per the criteria previously mentioned above, the target market is narrowed

down to companies that produce a sustainability report and are headquartered in the U.S.

(estimated at 1,100). Additional screens, such as membership in a collaborative CSR

group (e.g. Businesses for Social Responsibility or the Sustainability Consortium), further

narrows the scope to a few hundred companies. Then, GoodWorks targets companies

according to high engagement ratings, such as ranking among the best companies to

work for, having a volunteer based green team, or having a Chief Sustainability Officer

within the organization.

3.6 Market Growth

Not only is the GoodWorks platform a tool that can be used to effectively communicate

and engage employees in company CSR initiatives, but it also has to potential to transform

the way people work. The use of GoodWorks extends beyond CSR and can be utilized as

a self-organizing tool. By offering employees a voice to communicate their ideas, build

project teams and track performance, GoodWorks is an appropriate tool for any company

that is committed to shaping social consciousness and creating innovative products or

services. Similar to the growth in companies adopting sustainability measures due to the

importance of remaining current and competitive, tools like social networks are increasingly

embraced by organizations to maintain nimbleness and to inspire idea generation and

information sharing. Designed as a social network with a purpose, GoodWorks takes

collaboration to the next level by inspiring action in the real-world and tracking results.

Companies can adopt the GoodWorks platform throughout the supply chain and

companies of all sizes that embrace less hierarchical governance can use the platform to

seek better ways to spur innovation, collaboration and action. Therefore, the potential

market for GoodWorks is much larger than the $852 million addressable market calculated

above.



4.0 The Venture

4.1 Overview

GoodWorks provides an enterprise software system that radically improves employee

engagement by making it fun and rewarding to participate in CSR-related projects.

Through gaming dynamics within a corporate social network and online community, the

GoodWorks Engagement Platform turns unmotivated members of a workforce into

engaged “players” on the company’s team. Figure 6 below illustrates components of

gamification (see definition in Figure 7) and how these components align with human

desires. The green dots signify the primary desire a particular game mechanic fulfills, and

the blue dots show the other areas it affects.

Figure 6: Game Mechanics (Bunchball, Gamification 101, 2010)

Figure 7: Definition of Gamification

ga·mi·fi·ca·tion [gay-muh-fi-kay-shuhn] - Applying the mechanics of

gaming to non-game activities to change people’s behavior.



At the core of the venture and product design, GoodWorks provides sustainable value to

the world by helping turn employees into engaged contributors and unlocking latent

human potential to “do good” for society. Beyond wages, individuals engage with their

work when they feel a strong sense of purpose and the potential to achieve mastery in a

skill or topic area. GoodWorks helps individuals create and achieve “Projects with

Purpose” known as Missions that derive from a company’s CSR goals. These Missions

not only provide measurable value to employees and their companies, but also drive

progress towards a sustainable society by converting CSR from a company cost-center to

a source of innovation and increased profits.

4.2 Key Features, Benefits, and Product Experience

Key Features of the Platform:

I. Company specific and employee-created projects, known as “Missions.”

II. Personal employee profiles that show skills, passions, accomplishments and higher

“experience levels” as the employee completes Missions.

III. Online collaboration tools for building Mission teams and executing Missions.

IV. Virtual rewards / points for both completing and creating Missions.

V. Community leader boards and “newsfeeds” highlighting employee accomplishments.

VI. Dashboard and reports showing the positive impact of employee’s participation.

Benefits to Players (Employees):

I. Easy Meaningful Activity: Clearly tying simple games and missions to CSR objectives,

players (customer employees) feel purposeful accomplishment from small investments

in time and energy.

II. Connection, Trust and Community: Team missions and meaningful online

conversations encourage social connections across organizational and geographic

boundaries. Newsfeeds, leaderboards and the CSR Dashboard visibly include

employees in the corporate community.

III. Development and Leadership: Team missions help broaden employee skill sets. In

creating Missions, employees explore their passions, practice leadership, and clarify

their own career path.

IV. Larger Purpose: Employees feel connected to a larger purpose due to community

recognition and their personal impact on overall company CSR metrics. The platform



highlights “experience levels” and uses storytelling to place individuals in the larger

context.

V. Fun!: The power of play is harnessed to bring meaningful fun to the workplace.

Benefits to Customers:

I. Employee Engagement: With company-designed missions and dashboards, the

customized experience helps employees associate the company with positive,

meaningful activity.

II. Knowledge Management & Collaboration: Through personal profiles and search

functions, employees find and connect with others based on skills and interests. By

allowing employees to create missions, the company unlocks the creative knowledge

equity of its people.

III. CSR Education and Engagement: With a community tailored to the company’s CSR

goals, employees self-educate and become active participants in the company’s

overall CSR objectives.

IV. External CSR Benefits / Brand Enhancement: With extensive CSR reporting tools,

companies can publish CSR results with regular reports, on websites, or in marketing

material for external facing audiences.

V. Recruitment and Retention: Employee accomplishment reports enhance the

company’s reputation as a great place to work. Employee turnover decreases as

players engage in the platform.

VI. Improved Work Processes: Beyond the Missions, employees become accustomed to

a more productive, more collaborative working style. The same teamwork and tools

can be used for any type of project within the company, ultimately driving more

efficient operations and increased product innovation.

Next Generation Features:

I. Shared library of industry-specific Missions.

II. Integration with other corporate social networks, enterprise HR/Finance systems.

III. Integration with other CSR software systems (e.g. GHG tracking).

IV. Extension of community to company’s customers, suppliers, or partners.



Product Experience:

The platform is most easily understood with a simple experience story. See Figure 8 below.

Employee Jane signs on to find her initial personal profile already has her office

location, home city, and cartoon avatar. At any time she can add her interests and

hobbies as well as customize her avatar, but she starts with zero experience in the

company’s top CSR Mission Areas: Energy, Education, and Empowerment.

Jane starts by playing a quick energy efficiency puzzle game to gain experience. Within a

week, she’s completed some simple Missions like turning off her computer at night or

requesting an LED light bulb for her desk. Seeing how easy it is to earn points, Jane

browses for team Missions and finds the Cool Offices Mission to find ways to reduce

energy used for air conditioning. She then uses the online forums to connect with the

Mission team and kick off the project.

When Jane helps finish the Cool Offices Mission, her profile now shows her as Energy

Guru Level 3. After the online community “newsfeed” highlights the mission and her

higher level, co-workers reach out to ask her to join their Missions. She has also earned

1,000 points that she can use for discounts on green home products.

CSR Director John watches the Community Impact Dashboard and publishes monthly

reports for the company’s external website. When Jane reaches Energy Guru Level 5,

John reaches out to encourage her to create her own Energy Mission. John and other

CSR managers review Jane’s Mission and give it experience and rewards points.

Figure 8: GoodWorks Experience Story

4.3 Concept Basis

The GoodWorks premise is based on extensive research on the trends and effects of

gaming, and was particularly inspired by Jane McGonigal’s TED talk on how gaming can

create a better world. According to McGonigal’s research, games are really good at

getting people to solve complex problems and games are helping humans to become a

more collaborative species (Jane McGonigal: Gaming can make a better world, 2010).



McGonigal essentially asks the question, “So what if we took game mechanics and

applied them to solving real-world problems?” This is the birth of the engagement

economy where society leverages a corporation’s greatest asset, its people, and enables

them to realize their latent potential for solving complex sustainability issues. This is a world

where people play for good work, where ordinary people achieve extraordinarily epic wins

for collective ends.

4.4 Value Chain

GoodWorks’ Value Chain is illustrated below in Figure 9.

Figure 9: GoodWorks Value Chain

The GoodWorks Engagement Platform includes a base infrastructure, community and

Missions software features that will be hosted on a cloud service. The GoodWorks

management team will engage in consulting and mission design where appropriate or

outsource this service to independent consultants or internal company HR/CSR teams to

customize the software for the user base. Additional partnerships will be explored with

software providers such as carbon accounting mechanisms that add more robust features

to the service and enhance the total user experience.



Value is passed onto a corporation by empowering employees to take the lead in forming

and completing company CSR goals. Reaching CSR goals results in more engaged and

productive employees, higher brand value and loyalty, mitigation of regulatory risks, and

the ability to attract and retain talented employees. All of these benefits lead to increased

shareholder value through higher profits and results also contribute to building a better and

more sustainable world.

Data derived from user participation on the software platform will be compiled to

supplement a company’s CSR report for current and potential investors. Missions could

also be sponsored by advertisers. Advertisers deliver further value to users who engage in

and complete CSR missions with extrinsic incentives such as Groupon style rewards or

product discounts. Finally, NGO and community partners receive value through reaching

CSR goals via employee-completed missions. These goals align with the participating

corporate customers’ own CSR goals; therefore collaborative shared value is generated.

4.5 Value for Sustainability

GoodWorks’ fundamental role in the value chain is to provide the tools and expertise that

enable people to collaborate, engage with their work, and make a positive difference in the

word. In terms of a sustainability framework, no single set of metrics captures all the

possible contributions to sustainability that this venture could inspire. However,

GoodWorks is committed to measuring tangible value provided by its business. The

clearest way to measure such value is to track employee engagement and productivity

while making sure that customers are achieving increased completion of CSR goals that

lead to profit driving innovations.

The GoodWorks platform can integrate with corporate Human Resources and CSR

tracking systems to ensure that participation in Missions achieves measurable results.

Where available, the best metrics to use are those developed by the company itself. If no

such metrics exist, GoodWorks consults with the company before launch to develop the

appropriate performance metrics. Ongoing, GoodWorks will maintain its own differentiated

value as the experts in gamification for engagement in sustainability. The GoodWorks

venture will thrive as this expertise is realized in software systems throughout the corporate

world and beyond.



5.0 Competit ion

5.1 Competitive Landscape

The strategy canvas below in Figure 10 visually demonstrates the priorities of GoodWorks

in comparison to that of the competition, showing GoodWorks’ differentiating factors and

unique offerings. Points of differentiation include a playful interface, project management

tools, stimulating innovation, strong social networking, and fun, engaging missions. While

other platforms offer CSR tracking and reporting, none of them have features that focus on

unlocking latent human potential using gaming dynamics and fun interfaces.

Figure 10: Strategy Canvas

5.2 Competitors

GreenNurture is the clear first mover and closest competitor. It provides a web-based

platform for organizations to achieve their sustainability goals through employee-initiated

projects, offering a social networking component, a reward system powered by



RecycleBank, and custom assessment and reporting features. The platform enables an

organization to analyze 30 variables related to how its employees conduct business and

uses surveys to analyze how they interact with one another. Once the initial assessment is

complete, the organization is assigned an overall dynamic score. GreenNurture targets

companies that range from 10 to 10,000 employees, and recently announced a wider

deployment initiative with universities and municipalities (Mains, 2010).

Yammer is a corporate enterprise social network platform that enables employees to

communicate within the workplace and invite internal and external stakeholders to join

teams. It also hosts forums for communication throughout the organization, and utilizes

these forums to solve various issues. Yammer is compatible with a variety of apps,

increasing its user utility (Yammer, 2011).

AngelPoints (AP) is an enterprise software developer that provides online tools to help

businesses engage their employees in an array of different CSR goals. The platform

provides a comprehensive window that allows employees to easily access, organize, and

manage their CSR objectives. AP’s clients have logged more than 10 million volunteer

hours and engaged over 2 million employees in large-scale, world-class CSR and

sustainability programs. AngelPoints’ sole focus on CSR gives it a more limited potential

market than GoodWorks, and less market agility (AngelPoints, 2011).

Jive Engage is a social business platform that allows users to collaborate via internal-facing

online communities and to communicate with and gather market information from

customers using external-facing communities. It provides users with profiles and advanced

search options to recommend partners for collaboration and topics in which a user may be

interested. Users also gain experience and expertise points on their profile. Jive tripled its

number of users and doubled its number of corporate customers in the 2009-2010 fiscal

year, and hopes to IPO in 2011, when it expects to achieve $100 million in annual

revenues (WSJ, 2010). Although specific pricing is unavailable and dependent on

contractual agreements, a representative indicated that Jive was a high-quality platform,

and that low price was not a key differentiator (M. Davis, personal communication, May

17th, 2011).



5.3 Competitive Advantage

While other products focus on aspects of social networking, engagement, innovation, or

CSR, GoodWorks is unique in combining all four. No direct or indirect competitor has

streamlined the process of turning good sustainability ideas into action-oriented, mission-

style objectives that can be dynamically tracked and measured through a social interface.

By tying these missions directly back to overarching company objectives, the GoodWorks

Engagement Platform allows each employee and their managers to understand how

individual participation impacts larger organizational CSR goals.

GoodWorks differentiates itself through strengths in the following areas:

• Fun, engaging missions

• Personalized missions, avatars, and dashboard themes

• Mission management tools

• Player profiles with cumulative experience, awards, and achievement

• Tradable virtual currency

• CSR software packages with cross-platform customized avatars and profiles

A comparison of GoodWorks to its competitors is outlined below in Figure 11.



Figure 11: Competitive Grid



6.0 Marketing

6.1 Marketing Research

End-User Research: The first phase of research focused on validating the GoodWorks

concept and identifying primary features to be included in the design prototype. This was

achieved through an online survey among potential GoodWorks end-users

(SurveyMonkey.com, 2011). 78% reported being somewhat, very or extremely likely to use

the GoodWorks platform. End users were most interested in the following features: online

collaboration tools for building Mission teams and managing the execution process,

community leader boards and “newsfeeds” highlighting employee accomplishments, and

dashboards and reports showing the impact of the missions. The common theme made

clear the need for more company-wide transparency regarding sustainability initiatives, as

a majority of the respondents stated that the company they worked for had a CSR plan,

but did not know what type of software or tools were used to support these initiatives.

Moreover, the majority of the respondents stated that the biggest barrier to adopting

company-wide CSR initiatives was the lack of employee programs in place to promote

CSR practices. Lastly, nearly three quarters of the sample stated the Engagement Platform

should include education regarding global sustainability initiatives, confirming that an

optimal sales proposition to potential customers is the availability of consulting services for

the integration process.

Customer Needs Research: After the initial product concept and prototype design were

further developed, interviews were conducted with NetApp’s global sustainability director,

Peter Perrault. Findings from these discussions helped to further identify the user needs of

a potential customer. Although there was interest in the ability to track sustainability

contributions and impacts more closely and increase employee engagement in these

efforts, there were concerns that employees would be reluctant to adopt and learn a new

platform. The conclusion of the analysis is that employee contribution towards company-

wide sustainability is fragmented, that executive-level decision makers are the key

influencers for sustainability initiatives, and that there are a variety of adoption drivers,



including integration with existing corporate systems, measuring achievement of business

objectives and return on investment. Although interest in the GoodWorks concept was

relatively strong, revisions to the description are needed to ensure clear comprehension of

intended user benefits (P. Perrault, personal communication, April 22, 2011; P. Perrault,

personal communication, May 13, 2011).

6.2 Distribution and Pricing Strategy

GoodWorks will market and sell its application as a standalone service to new markets and

users and as an application for existing platforms such as SalesForce via AppExchange,

and Jive via its application developer community. Through this multi-channel approach,

GoodWorks can leverage the existing platform’s marketplace and user base while

independently reaching new markets. GoodWorks will charge a $36 per seat fee per year

and provide platform specific customization upon request to enhance the value and

experience of the GoodWorks service.

6.3 Brand Promise, Positioning & Values

GoodWorks’ vision is to transform the way people work by creating a workplace where

employees are inspired, engaged and empowered to create a thriving and compassionate

world.

Brand Promise: Employees Engage. Companies Prosper. Communities Thrive.

GoodWorks leverages a corporation’s greatest asset, its people, and enables them to

solve sustainability issues. Fundamentally this is about unlocking latent human potential

through more effective communication and collaboration in order to transform the way

companies choose to work. This is achieved through the GoodWorks Engagement

Platform that matches human creativity with meaningful work, enabling companies to track

and meet sustainability goals while realizing higher profits and happier employees.

Positioning: Good Work is the Best Business

The GoodWorks turnkey solution specializes in using CSR goals to engage employees in

more productive work. Through gaming dynamics, GoodWorks breaks down the

boundaries between work and play and encourages employees to co-create interactive

missions (Projects with Purpose) that solve real-world problems, while simultaneously

realizing higher profits and strengthening brand equity. Through a customizable and flexible



platform, companies get up and running quickly, while the platform’s powerful tracking

tools provide real-time metrics on the financial, environmental and social impacts.

GoodWorks’ positioning statement is shown below in Figure 12:

To socially responsible and employee centric companies who want to achieve an

integrated bottom line, GoodWorks provides a powerful turnkey solution that

enables companies to achieve greater profits, increased productivity and stronger

brand equity by empowering its employees to take action through a more

collaborative and engaging work environment.

Figure 12: Positioning Statement

6.4 Market Segmentation

The total addressable market analysis previously discussed places the initial market size

for GoodWorks at approximately $852 million per year. The initial target customer will have

on average 2,500 employees, understand the importance of employee engagement, and

have CSR goals already in place. Further targeting is based on Bob Willard’s five-stage

sustainability continuum (in Figure 4 above), which starts from the leadership’s mindset

where “green” initiatives are considered as expensive and bureaucratic threats in Stages 1,

2 and 3, to recognizing them as catalysts for strategic growth in Stages 4 and 5. Based on

the nature and design of the platform, GoodWorks aims to initially target the companies in

Stages 3 that are seeking movement into stages 4 and 5. The initial target customer will

help to evolve and refine the GoodWorks Engagement Platform, generating success

stories that will be used to demonstrate its value. Once the platform attains credibility in

the market, GoodWorks will expand its customer base into more mainstream markets (see

Figure 13 below).



Figure 13: Market Opportunity

6.5 Customer Archetype

The target group, “People Centric”, have a global workforce and a strong company culture

that places an emphasis on sustainability and personal responsibility. Investing in the

company, the community and the employees is the underlying theme for the “People

Centric” company culture. Employees that work for “People Centric” companies have likely

participated in volunteer activities through company driven initiatives, as paid volunteer

time is one of the company perks and highly encouraged. The company fosters an

environment of innovation and teamwork, encouraging workers to take a few hours a week

for their own projects, and celebrating achievements and milestones with company

parties. They have also been named one of the “best places to work” by Fortune Magazine

and proudly promote this title.



GoodWorks provides this customer with the tools to actively involve its entire workforce in

its sustainability initiatives and a dynamic network to share ideas, creativity and innovation,

while enabling the seamless integration of these efforts to the company’s customer-facing

website and CSR report.

6.6 Promotion & Sales Strategy

To achieve greater market penetration and address the complexities of company-wide

adoption, GoodWorks is designed to work well as a standalone service, but just as well

when integrated into another system. GoodWorks may choose to initially partner with

smaller companies in the San Francisco Bay Area and roll the product out through a

subset of offices as a pilot project. This will enable GoodWorks to test its value proposition,

technology, and feature set with real customers.

Then, GoodWorks will pursue integration and distribution partnerships through enterprise

platforms such as Jive or SalesForce, in order to quickly and effectively access the market

and grow. GoodWorks will leverage their data and platforms in a unique way to create a

customized and premium service for its user base. In this case, the distribution partners

become part of the GoodWorks customer set and will be served accordingly. GoodWorks

will also develop an affiliate program in order to partner with companies who provide

expert change management consulting services to further elevate the customer’s outcome

based on their specific needs.

What makes GoodWorks unique is the executive team’s depth of knowledge and breadth

of experience in sustainable management. In order to position GoodWorks as a leader in

the sustainability space and tap into and leverage its target market as GoodWorks

evangelists during the launch, the following strategies will be implemented.

• Engage key influencers in target organizations, change management and sustainability

communities and get them to test and promote GoodWorks in order to demonstrate

momentum.

• Provide a compelling story on how GoodWorks is the “future of how organizations

choose to work” and challenge stakeholders to see if they agree.

• Leverage a combination of traditional and social channels to communicate with these

constituencies.



7.0 Business Model

7.1 Three Revenue Streams

I. Customization: GoodWorks helps its customers develop and implement a solution

tailored to their business imperatives.

II. Consulting: GoodWorks’ sustainable management experts offer a range of service

levels to addresses the breadth and depth of its customers’ needs.

III. Subscription: GoodWorks’ platform is available on a per seat subscription basis.

GoodWorks derives 92% of its revenue from the annual employee subscription fees with

the remaining 8% coming from consultancy and customization shown graphically below in

Figure 14. GoodWorks assumes that as the target audience becomes less competent in

setting missions related to sustainability, that GoodWorks consultancy services will

contribute to a greater percentage of revenue. This is not reflected in the revenue figures,

as this section of customers will be targeted after the company’s fifth year of operation in

2017.

Figure 14: Revenue Streams



8.0 Financials

8.1 Financial Projections

GoodWorks’ highly scalable subscription model allows the company to grow its revenue at

compound annual growth rate (CAGR) of 75% over the first five years of operation, with

revenue reaching over $17 Million in 2017 (see below in Figure 15).

Figure 15: Revenue Projections

Product development and beta testing is estimated to take 18 months with the

GoodWorks platform coming to market in the first quarter of 2012. GoodWorks’ financial

projections assume that the company will become profitable at the end of 2014, three

years after coming to market, with the company becoming cash-flow positive in the fourth

quarter of 2015. GoodWorks profits reach over $17 Million in 2017, five years after

operations with cumulative cashflow surpassing $15 Million in the same year. A summary

of financials is provided below in Figure 16.



Figure 16: Financial Summary

8.2 Break Even Analysis

As costs begin to stabilize in 2017, GoodWorks’ breakeven point is 123,646 users, which

translates into approximately 49 companies with 2500 employees as shown in Figure 17

below.

Figure 17: Breakeven Summary

8.3 Capital Requirements

As can be seen from the GoodWorks return map below in Figure 18, the company requires

approximately $500,000 to develop the platform with an additional $1.5 Million needed to

grow the business until it is cashflow positive in 2015. GoodWorks assumes that the first

$500,000 will be raised through friends and family by the end of 2011 with the remaining

$1.5 Million being raised by the end of 2012 from angel investors. With low capital costs

and a scalable revenue growth, GoodWorks predicts that the company will be able to pay

investors more than three times their money within a four year period. GoodWorks will

avoid raising funds from venture capitalists in order to maintain control of how the

company chooses to grow.



Figure 18: Return Map

8.4 Exit

GoodWorks intends to grow its revenue stream considerably by 2020 before looking for a

strategic buyer to purchase the whole or part of the business. GoodWorks believes that

the Engagement Platform will be an attractive investment for enterprise software

companies such as SAP and will also be a strategic purchase for social networking

companies such as Facebook or Google who are looking to enter the corporate space and

develop existing products into social networks with a purpose.



9.0 Management & Organization for Venture

Launch

9.1 Management Team

The organizational design of GoodWorks will embody and reflect the transformational

nature of its service. Not only will GoodWorks help customers create a new way for their

employees to engage with each other and their company, GoodWorks will also employ its

own platform to work with each other using the paradigm of self organizing teams and

leveraging cross functional relationships throughout the organization.

The management team’s organization and experience are outlined below in Figure 19.



Figure 19: GoodWorks’ Management Team

9.2 Advisory Board – Target Members

I. Dr. Jane McGonigal is a visionary game designer and futurist. She is harnessing the

power of Internet games in new ways to help solve some of the biggest challenges

facing our world today and tomorrow. In her groundbreaking new book: Reality is

Broken: Why Games Make Us Better and How They Can Change the World (Penguin

Press), Dr. McGonigal explores the power and future of gaming and reveals how its

collaborative and motivational aspects are being used to solve some of the most

difficult challenges facing humanity.

II. Richard Price - founder and CEO of Academia.edu, a social network for academics.



III. Cynthia Scott - VP of Organizational Strategy at Saatchi & Saatchi S. and Professor of

Leadership at Presidio Graduate School.

IV. Richard Muncaster - VP of Corporate Strategy at KlickNation, a producer of social

games for Facebook.



10.0 Appendix

10.1 Financial Assumptions

GoodWorks has made a number of assumptions in order to forecast financial projections,

which can be found on the Assumptions page of the GoodWorks Financial Spreadsheet.

The revenue figures assume a subscription price of $3 per employee. This translates into

$36 per employee per year. The company is able to justify this price by showing that the

cost of the platform is 0.1% of the cost of an average employee of the target audience.

GoodWorks’ ability to increase productivity and reduce turnover provides an added value

to its subscribers rather than a cost center.

GoodWorks has also assumed that the average number of employees per company will be

2,500. This fits into the company's policy of targeting small to medium sized companies.

GoodWorks also assumes that a fee of $2,000 will be paid by each company to install the

platform. Additionally, GoodWorks has assumed that 60% of its clients will need 60 hours

of consultancy work per year and that the hourly rate would be fixed at $150. It was also

assumed that 20% of GoodWorks’ clients will need customization work of 40 hours per

year, at $150 per hour.

For Headcount assumptions please see the Assumptions page of the GoodWorks

Financial Spreadsheet.



10.2 GoodWorks Engagement Platform Screenshots

Figure 20: GoodWorks CEO Challenge

Figure 21: Design a Mission



Figure 22: Player Dashboard

Figure 23: Player Skills Profile



Figure 24: Company Progress Dashboard



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GoodWorks 2011

Business

Transcript of GoodWorks 2011